BHEL zooms 14% to 52-week high; up 250% in a year

Shares of Bharat Heavy Electricals Limited (BHEL) surged over 14 percent to hit an over eight-year high of Rs 269.35 on the National Stock Exchange (NSE) amid heavy volumes on March 4 morning.

A total of 15 crore shares had changed hands on BSE and NSE combined, way higher than the one-month average of of 4 crore shares.

The stock gained after the board of another state-run peer NTPC approved an investment worth Rs 17,195.3 crore for the third phase of the Singrauli Super Thermal Power Project for which BHEL was the only bidder for the construction.

At 11.47 am, BHEL was trading at Rs 267.75 on NSE, up 13 percent from the previous close. The multibagger stock has zoomed over 250 percent in the last year compared to a 26 percent rise in the Nifty. In just the last six months, the stock has surged 93 percent.

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The stock of the integrated power plant equipment manufacturer BHEL has been on a roll since the company last week signed a joint venture agreement (JVA) with Coal India (CIL) to undertake coal to chemicals business.

Under the joint venture, a coal to 2,000 TPD ammonium nitrate plant will be set up using the company’s in-house developed pressurised fluidised bed gasification (PFBG) technology.

The equity shareholding shall be 51 percent with CIL and 49 percent with BHEL. The JV shall be incorporated as a ‘Private Limited’ company with an initial paid-up share capital of Rs 1 lakh.

BHEL has operations in the power and industry segments. It supplies equipment such as turbo generators, boilers, turbines and accessories, and builds plants based on gas, coal, hydro, nuclear and solar power.

It caters to sectors such as process industries, transportation, power transmission and distribution, and defence. BHEL designs, engineers, manufactures, constructs, tests, commissions and services a wide range of products.

Also Read | Coal India gains on JV with BHEL for ammonium nitrate plant in Odisha, BHEL falls

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